Travelers to Acquire Corvus Insurance
03 Novembro 2023 - 9:00AM
Business Wire
Transaction accelerates deployment of
cutting-edge cyber capabilities
The Travelers Companies, Inc. (NYSE: TRV) today announced that
it has agreed to acquire Corvus Insurance Holdings, Inc. for
approximately $435 million. Founded in 2017, Corvus is an
industry-leading cyber insurance managing general underwriter,
powered by proprietary technology.
“We continue to make thoughtful investments in strategic
capabilities that advance our innovation agenda,” said Alan
Schnitzer, Chairman and Chief Executive Officer of Travelers. “This
transaction accelerates our access to cutting-edge cyber
capabilities that were on our strategic roadmap, including
sophisticated underwriting algorithms, advanced cyber vulnerability
scanning and digital connectivity to customers and distribution
partners.”
Powered by a proprietary, AI-driven cyber risk platform, Corvus
has developed an industry-leading suite of integrated cyber sales,
service and support capabilities. The Corvus team has extensive
expertise in the cyber product line and a strong presence in the
middle-market excess and surplus cyber insurance marketplace,
serving both wholesale brokers and large retail producers. Through
its platform, Corvus effectively identifies vulnerabilities
throughout the policy period to reduce customers’ exposure to cyber
events. Corvus’ platform also delivers distribution efficiencies to
insurance agents and brokers. Driven by its proven technology and
dynamic team, Corvus has grown its business at attractive loss
ratios.
“Corvus’ expertise in excess and surplus lines for cyber, along
with our industry-leading distribution position in the admitted
markets, is a powerful combination,” said Jeff Klenk, Executive
Vice President and President of Bond & Specialty Insurance at
Travelers. “In addition to having the opportunity to renew Corvus’
$200+ million book of business, we will leverage Corvus’ leading
capabilities to enhance the return profile of our already
attractive cyber portfolio. We have a strong working relationship
with the Corvus team through our existing cyber capacity
arrangements in the United States and Europe, and we are thrilled
to have them join the Travelers family.”
Madhu Tadikonda, Chief Executive Officer of Corvus, said, “At
Corvus we have been building a safer world through cyber insurance
products and digital tools that reduce risk and improve resilience
for policyholders. We are excited for the opportunity to contribute
our capabilities and knowledge to Travelers. Our complementary
cultures and strong commitment to innovation make this transaction
an excellent fit.”
Travelers will fund the transaction from internal resources. The
transaction is expected to close in the first quarter of 2024,
subject to regulatory approvals and other customary closing
conditions. While the acquisition is strategically important, the
expected impact to earnings in the near term is immaterial.
Jefferies LLC acted as financial advisor and Skadden, Arps,
Slate, Meagher & Flom LLP provided legal counsel to Travelers
in this transaction. Nomura Securities International, Inc. acted as
financial advisor and Gunderson Dettmer Stough Villeneuve Franklin
& Hachigian, LLP provided legal counsel to Corvus in this
transaction.
About Travelers
The Travelers Companies, Inc. (NYSE: TRV) is a leading provider
of property casualty insurance for auto, home and business. A
component of the Dow Jones Industrial Average, Travelers has
approximately 30,000 employees and generated revenues of
approximately $37 billion in 2022. For more information, visit
Travelers.com.
Forward-Looking Statements
All statements in this press release, other than statements of
historical facts, are “forward-looking statements” within the
meaning of the Private Securities Litigation Reform Act of 1995.
Forward-looking statements in this press release include, without
limitation, express or implied statements concerning the proposed
transaction and its expected impact on Travelers. Actual results of
matters addressed in these forward-looking statements involve risks
and uncertainties and may differ substantially from those expressed
or implied. Some of the factors that could cause actual results to
differ are discussed under the heading “Forward Looking Statements”
in Travelers’ most recent Form 10-K and Form 10-Q filed with the
Securities and Exchange Commission. Additional factors that could
cause actual results to differ include, but are not limited to,
risks relating to pursuing new markets and opportunities and the
risk that Travelers may not realize the anticipated benefits from
the transaction. In addition, the transaction is subject to closing
conditions and may not occur. The forward-looking statements in
this press release speak only as of the date of this press release,
and Travelers undertakes no obligation to update any
forward-looking statements.
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version on businesswire.com: https://www.businesswire.com/news/home/20231103036478/en/
Media: Patrick Linehan, 917-778-6267
Investors: Abbe Goldstein, 917-778-6825
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